TOYOTAS KAIZEN EXPERIENCEPresneted by: Omey Badakh (14325) Krishna Gupta (14241)

CONTENTSToyota Reinvents the Need for KaizenProduction, Productivity and Labour Force (1985-92)Timeline of ToyotaToyota Production SystemAbout KaizenPre-requisites for KaizenSeven Types of Wastes Identified by Toyota

CONTENTSThe Toyota ExperienceKAIZEN in Production EfficiencyWage system

Toyota Reinvents the Need for Kaizen

Production, Productivity and Labour Force (1985-92)

Chart1

100100100

10310498

104107100

10911395

10710897

10997108

10495113

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Production

Productivity

Labour Force

Sheet1

ProductionProductivityLabour Force

1985100100100

198610310498

1987104107100

198810911395

198910710897

199010997108

199110495113

1992100105106

Timeline of Toyota1933 - Automobile department established within textile loom maker Toyoda Automatic Loom Works -- now Toyota Industries Corp -- founded by inventor Sakichi Toyoda1935 - First vehicle, the Model G1 truck, built. First Toyota dealership established1936 - Production starts of its first car, the Model AA1957 - Crown becomes first passenger car made in Japan to be exported to the United States1962 - First overseas vehicle plant, in Brazil1964 - First Asian vehicle plant outside Japan, in Thailand

1972 - Cumulative production in Japan reaches 10 million vehicles1984 - Toyota's first U.S. car assembly plant, a joint venture with General Motors Corp, opens in California1989 - Toyota launches luxury Lexus brand in North America1992 - First European car plant begins production in Britain1997 - Prius, the first mass-produced hybrid car, launched1998 - Toyota takes majority stake in mini vehicle maker Daihatsu Motor Co1999 - 100 millionth Toyota vehicle produced in Japan

Timeline of Toyota

2001 - Toyota takes majority stake in truck maker Hino Motors Ltd2003 - Toyota makes 6.78 million vehicles and overtakes Ford Motor Co in annual sales to become world No.2 behind General Motors2005 - Toyota takes minority stake in Fuji Heavy Industries, maker of Subaru cars, for cooperation in vehicle technology development and use of its U.S. factory2006 - Toyota takes minority stake in truck maker Isuzu Motors Ltd to beef up diesel engine technology2006 - Toyota's group global sales of 8.808 million vehicles exceeds GM's by 128,000, making it the world's biggest automaker, authoritative industry magazine Automotive News says. Timeline of Toyota

Toyota Production SystemGoal: Quality, Lowest Cost, Shortest Lead timeTPS

JITJidokaContinuous FlowPull SystemStop and Notify the AbnormalitiesSeparate Human and Machine WorkStabilityHeijunkaStandardized WorkKaizen

About KaizenKaizen- Continuous Improvement in Personal life, Home life, Social life and Working lifeImprovement without Large Capital InvestmentThe Kaizen Strategy Begins and Ends with PeopleTop Management CommitmentChange Management

Pre-requisites for Kaizen

Discard conventional fixed ideas.Think how to do it, not why it cannot be doneDont make excuses, Start by questioning current practicesDont seek Perfection. Do it right away even if for only 50% of targetCorrect it right away, if you make mistakesDont spend money for Kaizen, Use your wisdomWisdom is brought out when faced with hardshipAsk WHY? five times and seek root causesSeek the wisdom of ten people rather than the knowledge of oneKaizen ideas are infinite

Seven Types of Wastes Identified by ToyotaOverproduction ahead of DemandIdle TimeUnnecessary Movement of Material and ProductOver-processingExcessive InventoriesUnnecessary Movement of PeopleProduction of Defective Products

The Toyota ExperienceOrganized Kaizen Cost CouncilsShojinkaTry TeamsProduction Efficiency

KAIZEN in Production EfficiencyAnnual Production efficiency targets.Change in measurement of production efficiency.Implementation of TVAL.New wages system.

Wage systemUntill 1990s:BW(1+PAC)(1+OPC)In 1990:GA = 10% of standard wageAA = 10 % of standard wageReduction of production allowance from 60% to 40 %.In 1993:Blue collar : SW= BW (40%)+GA(20%)+AA(20%)+PA(20%)White Collar : SW= BW (40%)+GA(40%)+AA(20%)Reduction of production allowance from 40% to 20%.Reduction of annual working hours by 300 Hours.

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